Production at the Nissan Ariya’s line is operating at 30% below capacity
Deliveries of the all-electric Nissan Ariya will be slower than expected due to issues impacting its production line in Tokyo, Japan.
Sources with knowledge of the matter assert that production of the Ariya is operating at least 30% below plans. It is understood that production has been slowed because of issues with the highly automated manufacturing system that Nissan established for the Ariya at its plant in Tochigi, north of Tokyo, Reuters reports.
The car manufacturer’s system allows it to produce cars with different powertrains on the same line, including EVs, hybrids, and combustion-powered models. One unnamed source says that getting this production line to operate at full capacity is “an extremely, extremely high challenge,” noting that the advanced paint line has become a particularly big issue.
Read: Nissan Forgot To Bolt Down Some Ariya Steering Wheels
In addition, Nissan is facing a shortage of plating for an important electronic component used for the Ariya after a fire at the Chinese supplier. Nissan itself notes that it has experienced difficulties with the supply of semiconductors in addition to disruptions in component shipments.
“Nissan is making a full and diligent effort to fully regain production capacity at the plant,” the automaker confirmed.
Word of Nissan’s production troubles comes shortly after the brand’s credit rating was cut to junk status by S&P Global Ratings last week due to the prospect of a tough year ahead.
“Performance at the company has been sluggish for more than three years,” S&P Global Ratings said. “Also, in the second half of the year, we expect softening demand for new car sales in the U.S. and Europe will pressure sales prices.”